Bill Text: MS HB901 | 2013 | Regular Session | Introduced
Bill Title: State funds; transfer certain to BCF, and transfer sum from Health Care Trust Fund to Expendable Fund.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2013-04-23 - Approved by Governor [HB901 Detail]
Download: Mississippi-2013-HB901-Introduced.html
MISSISSIPPI LEGISLATURE
2013 Regular Session
To: Appropriations
By: Representative Frierson
House Bill 901
AN ACT TO DIRECT THE STATE FISCAL OFFICER TO TRANSFER CERTAIN AMOUNTS TO THE BUDGET CONTINGENCY FUND FROM CERTAIN SPECIAL FUNDS DURING FISCAL YEAR 2014; TO BRING FORWARD SECTIONS 43-13-401 THROUGH 43-13-409, MISSISSIPPI CODE OF 1972, WHICH CREATE THE HEALTH CARE TRUST FUND AND THE HEALTH CARE EXPENDABLE FUND; TO CREATE NEW SECTION 33-15-55, MISSISSIPPI CODE OF 1972, TO ESTABLISH THE LOCAL GOVERNMENTS EMERGENCY COMMUNICATIONS EQUIPMENT REVOLVING LOAN PROGRAM AND REVOLVING LOAN FUND; TO PROVIDE THAT THE MISSISSIPPI EMERGENCY MANAGEMENT AGENCY MAY MAKE LOANS FROM THE REVOLVING LOAN FUND TO COUNTIES AND MUNICIPALITIES FOR THE PURPOSE OF PURCHASING WIRELESS EQUIPMENT FOR EMERGENCY COMMUNICATION SYSTEMS; TO PROVIDE FOR PLEDGES FOR REPAYMENT OF LOANS BY COUNTIES AND MUNICIPALITIES; TO PROVIDE FOR AUDITS OF COUNTIES AND MUNICIPALITIES WHERE LOAN PAYMENTS ARE IN ARREARS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. During fiscal year 2014, the State Fiscal Officer shall transfer to the Budget Contingency Fund created in Section 27-103-301, out of the following enumerated funds, the amounts listed below from each fund:
AGENCY/FUND FUND NO. AMOUNT
Treasurer's Office-Unclaimed Prop. 3178 3,717,914.00
TOTAL $3,717,914.00
SECTION 2. Section 43-13-401, Mississippi Code of 1972, is brought forward as follows:
43-13-401. It is declared by the Legislature that the funds received by the State of Mississippi from tobacco companies in settlement of a certain lawsuit brought against those companies by the State of Mississippi, or as a result of the settlement of any lawsuit brought against tobacco companies by another state, should be applied toward improving the health and health care of the citizens and residents of the state. It is the intent of the Legislature by this article to provide the manner and means necessary to carry out those purposes.
SECTION 3. Section 43-13-403, Mississippi Code of 1972, is brought forward as follows:
43-13-403. When used in this article, the following definitions shall apply, unless the context requires otherwise:
(a) "Health Care Trust Fund" means the trust fund established by Section 43-13-405 for the deposit of the funds received by the State of Mississippi as a result of the tobacco settlement, including income from the investment of those funds.
(b) "Health Care Expendable Fund" means the fund established by Section 43-13-407 for the annual transfer of certain funds from the Health Care Trust Fund that are available for appropriation by the Legislature.
(c) "Income" means all interest and dividends derived from the investment of any tobacco settlement funds and any capital gains from the sale or exchange of those investments.
(d) "Tobacco settlement" means the settlement of the case of Mike Moore, Attorney General ex rel. State of Mississippi v. The American Tobacco Company et al. (Chancery Court of Jackson County, Mississippi, Cause No. 94-1429) and the settlement of any case brought against tobacco companies by another state.
SECTION 4. Section 43-13-405, Mississippi Code of 1972, is brought forward as follows:
43-13-405. (1) In accordance with the purposes of this article, there is established in the State Treasury the Health Care Trust Fund, into which shall be deposited Two Hundred Eighty Million Dollars ($280,000,000.00) of the funds received by the State of Mississippi as a result of the tobacco settlement as of the end of fiscal year 1999, and all tobacco settlement installment payments made in subsequent years for which the use or purpose for expenditure is not restricted by the terms of the settlement, except as otherwise provided in Section 43-13-407(2) and (3) and Section 41-113-11. All income from the investment of the funds in the Health Care Trust Fund shall be credited to the account of the Health Care Trust Fund. The funds in the Health Care Trust Fund at the end of a fiscal year shall not lapse into the State General Fund.
(2) The Health Care Trust Fund shall remain inviolate and shall never be expended, except as provided in this article. The Legislature shall appropriate from the Health Care Trust Fund such sums as are necessary to recoup any funds lost as a result of any of the following actions:
(a) The federal Centers for Medicare and Medicaid Services, or other agency of the federal government, is successful in recouping tobacco settlement funds from the State of Mississippi;
(b) The federal share of funds for the support of the Mississippi Medicaid Program is reduced directly or indirectly as a result of the tobacco settlement;
(c) Federal funding for any other program is reduced as a result of the tobacco settlement; or
(d) Tobacco cessation programs are mandated by the federal government or court order.
(3) The State Treasurer may transfer ownership of all assets in the RMK Select Timberland 1 Portfolio of the Health Care Trust Fund to the Public Employees' Retirement System to be credited to the Public Employees' Retirement System employer's accumulation account. However, in no instance shall the State Treasurer make this transfer until a transfer equal to the monetary value of the assets in the RMK Select Timberland 1 Portfolio of the Health Care Trust Fund is made by the Public Employees' Retirement System into the Health Care Trust Fund.
(4) This section shall stand repealed on July 1, 2013.
SECTION 5. Section 43-13-407, Mississippi Code of 1972, is brought forward as follows:
43-13-407. (1) In accordance with the purposes of this article, there is established in the State Treasury the Health Care Expendable Fund, into which shall be transferred from the Health Care Trust Fund the following sums:
(a) In fiscal year 2005, Four Hundred Fifty-six Million Dollars ($456,000,000.00);
(b) In fiscal year 2006, One Hundred Eighty-six Million Dollars ($186,000,000.00);
(c) In fiscal year 2007, One Hundred Eighty-six Million Dollars ($186,000,000.00);
(d) In fiscal year 2008, One Hundred Six Million Dollars ($106,000,000.00);
(e) In fiscal year 2009, Ninety-two Million Two Hundred Fifty Thousand Dollars ($92,250,000.00);
(f) In the fiscal year beginning after the calendar year in which none of the amount of the annual tobacco settlement installment payment will be deposited into the Health Care Expendable Fund as provided in subsection (3)(d) of this section, and in each fiscal year thereafter, a sum equal to the average annual amount of the dividends, interest and other income, including increases in value of the principal, earned on the funds in the Health Care Trust Fund during the preceding four (4) fiscal years.
(2) In any fiscal year in which interest, dividends and other income from the investment of the funds in the Health Care Trust Fund are not sufficient to fund the full amount of the annual transfer into the Health Care Expendable Fund as required in subsection (1)(f) of this section, the State Treasurer shall transfer from tobacco settlement installment payments an amount that is sufficient to fully fund the amount of the annual transfer.
(3) Beginning with calendar year 2009, at the time that the State of Mississippi receives the tobacco settlement installment payment for each calendar year, the State Treasurer shall deposit the following amounts of each of those installment payments into the Health Care Expendable Fund:
(a) In calendar years 2009 and 2010, the total amount of the installment payment;
(b) In calendar year 2011, the amount of the installment payment less Ten Million Dollars ($10,000,000.00);
(c) In calendar year 2012, the total amount of the installment payment;
(d) In calendar year 2013, and each calendar year thereafter, the amount of the installment payment to be deposited into the Health Care Expendable Fund shall be reduced by an additional Ten Million Dollars ($10,000,000.00) each calendar year until the calendar year that the amount of the installment payment that otherwise would be deposited into the Health Care Expendable Fund is less than the average annual amount of the dividends, interest and other income, including increases in value of the principal, earned on the funds in the Health Care Trust Fund during the preceding four (4) fiscal years. Beginning with that calendar year and each calendar year thereafter, none of the amount of the installment payment shall be deposited into the Health Care Expendable Fund.
(4) (a) In addition to any other sums required to be transferred from the Health Care Trust Fund to the Health Care Expendable Fund, the sum of One Hundred Twelve Million Dollars ($112,000,000.00) shall be transferred from the Health Care Trust Fund to the Health Care Expendable Fund in fiscal year 2011.
(b) In addition to any other sums required to be transferred from the Health Care Trust Fund to the Health Care Expendable Fund, the sum of Fifty-six Million Two Hundred Sixty-three Thousand Four Hundred Thirty-eight Dollars ($56,263,438.00) shall be transferred from the Health Care Trust Fund to the Health Care Expendable Fund during fiscal year 2012.
(c) In addition to any other sums required to be transferred from the Health Care Trust Fund to the Health Care Expendable Fund, the sum of Ninety-seven Million Four Hundred Fifty Thousand Three Hundred Thirty-two Dollars ($97,450,332.00) shall be transferred from the Health Care Trust fund to the Health Care Expendable Fund during fiscal year 2013.
(5) If Medicaid expenditures are projected to exceed the amount of funds appropriated to the Division of Medicaid in any fiscal year in excess of the expenditure reductions to providers, funds shall be transferred by the State Fiscal Officer from the Health Care Trust Fund into the Health Care Expendable Fund and then to the Governor's Office, Division of Medicaid, in the amount and at such time as requested by the Governor to reconcile the deficit.
(6) All income from the investment of the funds in the Health Care Expendable Fund shall be credited to the account of the Health Care Expendable Fund. Any funds in the Health Care Expendable Fund at the end of a fiscal year shall not lapse into the State General Fund.
(7) The funds in the Health Care Expendable Fund shall be available for expenditure under specific appropriation by the Legislature beginning in fiscal year 2000, and shall be expended exclusively for health care purposes.
(8) The provisions of subsection (1) of this section may not be changed in any manner except upon amendment to that subsection by a bill enacted by the Legislature with a vote of not less than three-fifths (3/5) of the members of each house present and voting.
(9) If the State Treasurer, in consultation with the Executive Director of the Department of Finance and Administration, determines that there is a need to borrow funds to offset any temporary cash flow deficiencies in the Health Care Expendable Fund created in this section, the Treasurer may borrow those funds from any state-source special funds in the State Treasury in amounts that can be repaid from the Health Care Expendable Fund during the fiscal year in which the funds are borrowed. The State Treasurer shall immediately notify the Legislative Budget Office and the Department of Finance and Administration of each transfer into and out of the Health Care Expendable Fund.
(10) No later than September 30, 2011, the State Treasurer shall transfer from the Health Care Expendable Fund to the Health Care Trust Fund an amount equivalent to the unencumbered ending cash balance of the Health Care Expendable Fund as of June 30, 2011, less Three Million Eight Hundred Forty Thousand Dollars ($3,840,000.00).
(11) Subsections (1), (2), (5), (6) and (7) of this section shall stand repealed on July 1, 2013.
SECTION 6. Section 43-13-409, Mississippi Code of 1972, is brought forward as follows:
43-13-409. (1) There is established a board of directors to invest the funds in the Health Care Trust Fund and the Health Care Expendable Fund. The board of directors shall consist of thirteen (13) members as follows:
(a) Seven (7) voting members as follows: the State Treasurer or his designee, the Attorney General or his designee, and one (1) member from each congressional district to be appointed by the Governor with the advice and consent of the Senate. Of the members appointed by the Governor, one (1) member shall be appointed for an initial term that expires on March 1, 2000; one (1) member shall be appointed for an initial term that expires on March 1, 2001; one (1) member shall be appointed for an initial term that expires on March 1, 2002; one (1) member shall be appointed for an initial term that expires on March 1, 2003; and one (1) member shall be appointed for an initial term that expires on March 1, 2004. Upon the expiration of any of the initial terms of office, the Governor shall appoint successors by and with the advice and consent of the Senate for terms of five (5) years from the expiration date of the previous term. Any member appointed by the Governor shall be eligible for reappointment. Each member appointed by the Governor shall possess knowledge, skill and experience in business or financial matters commensurate with the duties and responsibilities of the board of directors in administering the Health Care Trust Fund and the Health Care Expendable Fund.
(b) Two (2) nonvoting, advisory members of the Senate shall be appointed by the Lieutenant Governor, and one (1) nonvoting, advisory representative of the health care community shall be appointed by the Lieutenant Governor, who shall serve for the length of the term of the appointing official and shall be eligible for reappointment.
(c) Two (2) nonvoting, advisory members of the House of Representatives shall be appointed by the Speaker of the House, and one (1) nonvoting, advisory representative of the health care community shall be appointed by the Speaker of the House, who shall serve for the length of the term of the appointing official and shall be eligible for reappointment.
(d) Any person appointed to fill a vacancy on the board of directors shall be appointed in the same manner as for a regular appointment and shall serve for the remainder of the unexpired term only.
(2) Nonlegislative members of the board of directors shall serve without compensation, but shall be reimbursed for each day's official duties of the board at the same per diem as established by Section 25-3-69, and actual travel and lodging expenses as established by Section 25-3-41. Legislative members of the board of directors shall receive the same per diem and expense reimbursement as for attending committee meetings when the Legislature is not in regular session.
(3) The State Treasurer shall be the chairman of the board of directors. The board of directors shall annually elect one (1) member to serve as vice chairman of the board. The vice chairman shall act as chairman in the absence of or upon the disability of the chairman or if there is a vacancy in the office of chairman.
(4) All expenses of the board of directors in carrying out its duties and responsibilities under this article, including the payment of per diem and expenses of the nonlegislative members of the board, shall be paid from funds appropriated to the State Treasurer's office for that purpose.
(5) The board of directors shall invest the funds in the Health Care Trust Fund and the Health Care Expendable Fund in any of the investments authorized for the Mississippi Prepaid Affordable College Tuition Program under Section 37-155-9, and those investments shall be subject to the limitations prescribed by Section 37-155-9.
(6) In furtherance of the powers granted under subsection (5) of this section, the board of directors shall have such powers as necessary or convenient to carry out the purposes and provisions of this article, including, but not limited to, the following express powers:
(a) To contract for necessary goods and services, to employ necessary personnel, and to engage the services of consultants for administrative and technical assistance in carrying out its duties and responsibilities in administering the Health Care Trust Fund and the Health Care Expendable Fund;
(b) To administer the Health Care Trust Fund and the Health Care Expendable Fund in a manner that is sufficiently actuarially sound to meet the obligations of this article and to establish a comprehensive investment plan for the purposes of this article, which shall specify the investment policies to be utilized by the board of directors in administering the funds;
(c) Subject to the terms, conditions, limitations and restrictions specified in Section 37-155-9, the board of directors shall have power to sell, assign, transfer and dispose of any of the securities and investments of the Health Care Trust Fund and the Health Care Expendable Fund, provided that any such sale, assignment or transfer has the majority approval of the entire board; and
(d) To annually prepare or cause to be prepared a report setting forth in appropriate detail an accounting of the Health Care Trust Fund and the Health Care Expendable Fund and a description of the financial condition of the funds at the close of each fiscal year, including any recommendations for legislation regarding the investment authority of the board of directors over the funds. The report shall be submitted to the Governor and the Legislative Budget Office on or before September 1 of each fiscal year.
SECTION 7. (1) There is established the Local Governments Emergency Communications Equipment Revolving Loan Program to be administered by the Mississippi Emergency Management Agency for the purpose of providing loans to counties or municipalities for to purchase wireless equipment for emergency communication systems.
(2) There is created a special fund in the State Treasury to be designated as the "Local Governments Emergency Communications Equipment Revolving Loan Fund," which fund shall consist of such monies as provided by the Legislature and monies provided through donations and grants, and shall be maintained in perpetuity. Monies in the revolving loan fund shall be used for the Local Governments Emergency Communications Equipment Revolving Loan Program as provided in this section. Unexpended amounts remaining in the revolving loan fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned on amounts in the revolving loan fund shall be deposited to the credit of the fund. Monies in the revolving loan fund may not be used or expended for any purpose except the purposes outlined in this section.
(3) Monies in the revolving loan fund that are derived from interest earnings on the fund balance may be used by the Mississippi Emergency Management Agency for the ordinary and necessary administration of the revolving loan program. The Mississippi Emergency Management Agency may escalate its budget and expend those monies in accordance with rules and regulations of the Department of Finance and Administration in a manner consistent with the escalation of federal funds.
(4) (a) A county or municipality may apply to the Mississippi Emergency Management Agency for a loan under the revolving loan program. The Mississippi Emergency Management Agency may make loans to counties and municipalities from the revolving loan fund, at the rate of interest provided for in paragraph (b) of this subsection, to assist counties and municipalities in making purchases of wireless emergency communications equipment. Loans shall be made as set forth in a loan agreement in amounts not to exceed one hundred percent (100%) of eligible project costs as established by the Mississippi Emergency Management Agency. The Mississippi Emergency Management Agency may require county or municipal participation or funding from other sources, or otherwise limit the percentage of costs covered by loans from the revolving loan fund. The Mississippi Emergency Management Agency may establish a maximum amount for any loan in order to provide for broad and equitable participation in the revolving loan program and loans for eligible emergency communication wireless equipment purchases as provided in this section.
(b) The rate of interest on loans made from the revolving loan fund shall be at the rate of zero percent (0%) per annum.
(5) A county that receives
a loan from the revolving loan fund shall pledge for repayment of the loan any
part of the homestead exemption annual tax loss reimbursement to which it may
be entitled under Section 27-33-77. A municipality that receives a loan from
the revolving loan fund shall pledge for repayment of the loan any part of the
sales tax revenue distribution to which it may be entitled under Section 27-65-75.
Each loan agreement shall provide for (i) monthly payments, (ii) semiannual
payments, or (iii) other periodic payments, the annual total of which shall not
exceed the annual total for any other year of the loan by more than fifteen
percent (15%). The loan agreement shall provide for the repayment of all funds
received within not more than five (5) years from the date of loan origination.
(6) The State Auditor, upon request of the Mississippi Emergency
Management Agency, shall audit the receipts and expenditures of a county or
municipality whose loan payments appear to be in arrears, and if he finds that
the county or municipality is in arrears in those payments, he shall
immediately notify the Executive Director of the Department of Finance and
Administration, who shall withhold all future payments to the county of
homestead exemption reimbursements under Section 27-33-77 and all sums
allocated to the county or the municipality under Section 27-65-75 until such
time as the county or the municipality is again current in its loan payments as
certified by the Mississippi Emergency Management Agency.
(7) Evidences of indebtedness that are issued under this section shall not be deemed indebtedness within the meaning specified in Section 21-33-303 with regard to municipalities, and in Section 19-9-5 with regard to counties.
SECTION 8. This act shall take effect and be in force from and after July 1, 2013.
